Thames Water is facing an investigation from the industry regulatory after failing to deliver more than 100 environmental improvement schemes on time.
Ofwat said on Wednesday it had opened an enforcement case into the embattled utility to determine whether it had breached its obligations.
Thames Water committed to deliver 812 schemes as part of the Water Industry National environmental Programme (WINEP) between 2020 and 2025.
But the firm has since alerted Ofwat and the Environment Agency that it will be unlikely to deliver 100 of them by 31 March 2025.
“Customers have paid for Thames Water to carry out these essential environmental schemes,” Lynn Parker, senior director for enforcement at Ofwat, said.
“We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations.
If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right.
The announcement piles yet more pressure on UK’s largest water company as it awaits a decision from the High Court over its bid for a £3bn emergency loan seen as critical to its survival.
It also comes amid significant bill hikes for consumers, which were approved by Ofwat to fix the company’s ageing infrastructure and reduce sewage leaks.
“While Ofwat has concerns which it must investigate, opening an enforcement case does not automatically imply the company has breached their obligations,” the regulator added.
“Once Ofwat has fully investigated, it will publish details of its findings and, where appropriate, any proposed action to remedy any identified breaches.”
